NCUA: Corporate Stabilization Fund Receives Clean 2012 Audit

The Temporary Corporate Credit Union Stabilization Fund has received a clean audit opinion for 2012, the NCUA announced on Wednesday.

KPMG LLP, the independent firm that audits the fund’s financial statements, issued an unqualified audit opinion with no reportable findings.

The NCUA had previously released the fund’s 2012 unaudited financial statements during its February board meeting.

“An independent auditor has given NCUA a clean financial statement audit opinion for the Stabilization Fund each year since Congress established it in 2009,” said NCUA Board Chairman Debbie Matz.

“KMPG’s report is confirmation that we are fulfilling our financial reporting responsibilities,” Matz said. “We are operating the fund prudently and providing high-quality reporting that satisfies our need to maintain transparency as we manage the resolution of the corporate credit union crisis."

Now that the 2012 Stabilization Fund audit is complete, the NCUA said it will soon make public updates regarding corporate system resolution costs and the NCUA Guaranteed Notes Program, in which the regulator repackaged corporate legacy assets and sold them to investors. The information will include final 2012 data on total actual losses or implied write-downs on the failed corporates’ legacy assets.

The NCUA said it will also adjust its estimated loss projection ranges, which will impact future corporate assessments paid annually by federally insured credit unions to fund corporate stabilization.